{"id":4248,"date":"2022-09-27T18:58:03","date_gmt":"2022-09-27T13:28:03","guid":{"rendered":"https:\/\/fatakpay.com\/blog\/?p=4248"},"modified":"2026-02-28T15:56:11","modified_gmt":"2026-02-28T10:26:11","slug":"what-are-credit-score-ranges-and-what-do-they-mean","status":"publish","type":"post","link":"https:\/\/www.fatakpay.com\/blog\/credit-score\/what-are-credit-score-ranges-and-what-do-they-mean\/","title":{"rendered":"What Is Credit Score Range &#038; How To Read It?"},"content":{"rendered":"\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_83 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.fatakpay.com\/blog\/credit-score\/what-are-credit-score-ranges-and-what-do-they-mean\/#Introduction\" >Introduction<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.fatakpay.com\/blog\/credit-score\/what-are-credit-score-ranges-and-what-do-they-mean\/#Credit_Bureaus_in_India\" >Credit Bureaus in India<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.fatakpay.com\/blog\/credit-score\/what-are-credit-score-ranges-and-what-do-they-mean\/#What_are_Credit_Score_Ranges\" >What are Credit Score Ranges?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.fatakpay.com\/blog\/credit-score\/what-are-credit-score-ranges-and-what-do-they-mean\/#What_factors_affect_your_Credit_Scores\" >What factors affect your Credit Scores?<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.fatakpay.com\/blog\/credit-score\/what-are-credit-score-ranges-and-what-do-they-mean\/#How_to_improve_your_Credit_Score\" >How to improve your Credit Score?<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Introduction\"><\/span>Introduction<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>A credit score plays a crucial role in determining your creditworthiness. Whenever you Apply for a <mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-cyan-blue-color\"><a href=\"https:\/\/web.fatakpay.com\/authentication\/login\" target=\"_blank\" rel=\"noopener\">personal loan online<\/a><\/mark>, banks or Non-banking financial institutions will evaluate your credit score while deciding whether to lend you money or not. The credit score also influences the loan amount to be sanctioned and the interest rate to be paid by you as a borrower.&nbsp; Additionally, if you have a lower credit score, the lender might deny your loan application.<\/p>\n\n\n\n<p>When you apply for a loan or a credit card from a bank or <mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-cyan-blue-color\"><a href=\"https:\/\/fatakpay.com\/blog\/what-is-an-nbfc\/\" target=\"_blank\" rel=\"noopener\">NBFCs<\/a><\/mark>, a higher <mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-cyan-blue-color\"><a href=\"https:\/\/fatakpay.com\/blog\/what-is-a-credit-score-and-how-to-improve-it-with-fatakpay\/\" target=\"_blank\" rel=\"noopener\">credit score<\/a><\/mark> may enable you to get additional benefits, such as a higher loan amount, longer repayment period and lower interest rate.<\/p>\n\n\n\n<p><strong>What is a credit score?<\/strong><\/p>\n\n\n\n<p>A credit score is a three-digit number which usually ranges from 300 to 900 and it estimates the creditworthiness of the borrower. In other words,<\/p>\n\n\n\n<p>It helps in assessing your ability to repay the amount you have borrowed.<\/p>\n\n\n\n<p>The applicant with the highest score is considered to be reliable. Always strive to be at the top of the range as it is pretty advantageous when applying for a loan or credit card. In contrast, if your score is low or you fall into a lower range, this shows that you are an irresponsible loan applicant and have not paid your loans or other dues on time.<\/p>\n\n\n\n<p>A higher credit score gives you access to more credit products at lower interest rates. However, when assessing <strong>applicants for loans and credit cards<\/strong>, creditors may also set their standards for what constitutes good or <mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-cyan-blue-color\"><a href=\"https:\/\/fatakpay.com\/blog\/fatakpay-com-how-to-improve-your-credit-score\/\" target=\"_blank\" rel=\"noopener\">bad credit scores<\/a><\/mark>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Credit_Bureaus_in_India\"><\/span><strong>Credit Bureaus in India<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>A credit bureau is nothing but a credit score agency. There are 4 credit bureaus in India which are licensed by the Reserve Bank of India(RBI). These credit bureaus calculate your credit score based on the credit information provided by banks, credit card companies, and other money-lending organisations periodically.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>TransUnion CIBIL (Credit Information Bureau India Limited)<\/li>\n\n\n\n<li>Experian<\/li>\n\n\n\n<li>CRIF High Mark<\/li>\n\n\n\n<li>Equifax<\/li>\n<\/ul>\n\n\n\n<p>It is important to note that there is the distinct credit score ranges for each credit bureau. Your credit score can range from 300 to 900, with 300 being the lowest and 900 being the highest. A higher score reduces the risk that lenders may reject your <strong>loan application.<\/strong><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_Credit_Score_Ranges\"><\/span><strong>What are Credit Score Ranges?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Even though each bureau has different scoring models, a score between 700 and 750 is usually considered as good, whereas one below 650 is either fair or bad.<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li><strong>300-549<\/strong>: This is the range with the lowest CIBIL score. It indicates that you have fallen behind on your loan payments or credit card bills. Lenders will view you as a high-risk borrower who is likely to default on their loans.<\/li>\n<\/ol>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>550-649<\/strong>: Although this CIBIL score range is regarded as fair, it indicates that you have had difficulty in making on-time payments. Your loans might not be approved by many lenders, and those that are might have higher interest rates and down payments.<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>650-749<\/strong>: This CIBIL score indicates that you have good credit records. You have a high chance of getting a loan approval or a credit card. However, you may not get the best interest while <strong>applying for a loan.<\/strong><\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>750-900<\/strong>: A CIBIL score over 750 is regarded as excellent and indicates that you have an impressive payment history and have consistently paid your dues on time. Lenders will grant you loans easily and at lower interest rates because you pose the lowest risk of becoming a defaulter.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_factors_affect_your_Credit_Scores\"><\/span><strong>What factors affect your Credit Scores?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ol class=\"wp-block-list\">\n<li><strong>Payment history<\/strong>: Your payment history is used to calculate 35% of your credit score. It shows how consistently you&#8217;ve paid your bills, how many times you&#8217;ve missed payments, and how many days past the due date you&#8217;ve paid them. Therefore if you have a high percentage of on-time payments, you can get a good score. Make sure you never skip a payment because doing so might harm your credit score.<\/li>\n<\/ol>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>How much you owe<\/strong>: How much you owe on loans and credit cards accounts for around 30% of your credit score. Your credit score would suffer if you have a high balance and have used up all of your credit card&#8217;s available credit. While low balances and on-time payments would boost the score.<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Credit history length<\/strong>: 15% of your credit score is determined by the length of your <mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-cyan-blue-color\"><a href=\"https:\/\/fatakpay.com\/blog\/the-importance-of-a-strong-bureau-score-and-a-healthy-credit-history\/\" target=\"_blank\" rel=\"noopener\">credit history<\/a><\/mark>. You would certainly have a higher <strong>credit score<\/strong> if you have a long history of on-time payments.<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Credit mix<\/strong>: 10% of your credit score that is based on your credit mix(types of loans). Having a mix of various loans like instalment loans, home loans, and credit cards will increase your credit score.<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Credit activity<\/strong>: Your recent credit activities will determine the remaining 10% of your credit score. Credit activities include all the information relating to opening or applying for various accounts, repayment history, types of loans you have applied for and the usage of the credit limit.<\/li>\n<\/ul>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_to_improve_your_Credit_Score\"><\/span><strong>How to improve your Credit Score?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<ol class=\"wp-block-list\">\n<li><strong>Make payments on time<\/strong>: Missed payments can lower your credit score. Avoid them at all costs, and if at all possible, try to pay more than the minimum each month.<\/li>\n<\/ol>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Keep credit utilization low<\/strong>: You shouldn&#8217;t borrow more just because you can, though. Avoid carrying a balance that is greater than 30% of your total credit limit as a general rule.<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Get a secured credit card<\/strong>: Unlike most, there are specific credit cards that are intended to help you build your credit without any risk to your lender. You must pay your lender cash equal to the total amount you are going to borrow and you must make on-time, full payments on all amounts borrowed each month.<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Do not close old accounts<\/strong>: Avoid closing old accounts till you reach an excellent credit score. As the credit score depends on credit history length, closing those old and unused credit accounts could potentially lower your credit scores.<\/li>\n<\/ul>\n\n\n\n<p>Always aim to have an excellent credit score. At <mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-cyan-blue-color\"><a href=\"https:\/\/fatakpay.com\/\" target=\"_blank\" rel=\"noopener\">Fatakpay<\/a><\/mark>, we provide virtual credit facilities at a 0% interest rate to users without a credit history. When you make payments on time, this helps you build and increase your credit score. Thus, <strong><a href=\"https:\/\/link.ftkp.in\/2uSI\/si8ubmv9\" target=\"_blank\" rel=\"noopener\">Fatakpay<\/a> <\/strong>aids every individual by paving the way for easier access to better credit from the nation&#8217;s major financial institutions. Make use of this benefit and build your credit score.<\/p>\n\n\n\n<p>In the end, lenders may set their standards for application approval, including credit ranges. However, you can make reasonable assumptions about your financial situation if you know where you fall on a <strong>credit score<\/strong> scale.<\/p>\n\n\n<\/p>\n\n\n<script type=\"application\/ld+json\">\n{\n  \"@context\": \"https:\/\/schema.org\",\n  \"@type\": \"BlogPosting\",\n  \"headline\": \"What Are Credit Score Ranges and What Do They Mean?\",\n  \"description\": \"Learn about different credit score ranges and what they signify. FatakPay explains how to interpret your score and maintain a healthy range.\",\n  \"image\": \"https:\/\/fatakpay.com\/blog\/wp-content\/uploads\/2022\/09\/What-are-credit-score-ranges-and-what-do-they-mean.jpg\",\n  \"datePublished\": \"2022-09-27\",\n  \"dateModified\": \"2022-09-27\",\n  \"mainEntityOfPage\": {\n    \"@type\": \"WebPage\",\n    \"@id\": \"https:\/\/fatakpay.com\/blog\/personal-finance\/credit-score\/what-are-credit-score-ranges-and-what-do-they-mean\/\"\n  },\n  \"author\": {\n    \"@type\": \"Organization\",\n    \"name\": \"FatakPay Digital Pvt. Ltd.\",\n    \"url\": \"https:\/\/fatakpay.com\"\n  },\n  \"publisher\": {\n    \"@type\": \"Organization\",\n    \"name\": \"FatakPay Digital Pvt. 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The credit score also influences the loan amount to be sanctioned and the interest rate to<\/p>\n","protected":false},"author":1,"featured_media":6994,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[164],"tags":[],"class_list":{"0":"post-4248","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-credit-score"},"_links":{"self":[{"href":"https:\/\/www.fatakpay.com\/blog\/wp-json\/wp\/v2\/posts\/4248","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.fatakpay.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.fatakpay.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.fatakpay.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.fatakpay.com\/blog\/wp-json\/wp\/v2\/comments?post=4248"}],"version-history":[{"count":11,"href":"https:\/\/www.fatakpay.com\/blog\/wp-json\/wp\/v2\/posts\/4248\/revisions"}],"predecessor-version":[{"id":8717,"href":"https:\/\/www.fatakpay.com\/blog\/wp-json\/wp\/v2\/posts\/4248\/revisions\/8717"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.fatakpay.com\/blog\/wp-json\/wp\/v2\/media\/6994"}],"wp:attachment":[{"href":"https:\/\/www.fatakpay.com\/blog\/wp-json\/wp\/v2\/media?parent=4248"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.fatakpay.com\/blog\/wp-json\/wp\/v2\/categories?post=4248"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.fatakpay.com\/blog\/wp-json\/wp\/v2\/tags?post=4248"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}